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FTX is being investigated by the Bahamas Financial Crimes Branch

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Authorities in the Bahamas reported Sunday that bitcoin (BTC) and cryptocurrency exchange FTX is now formally under investigation by a financial crimes police unit. This comes just days after the company filed for bankruptcy.

The Bahamas Police released a statementthrough its official Twitter account, in which it stated that. explains the reason for the investigation:

“In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd, a team of financial investigators from the Financial Crimes Branch is working closely with the Bahamas Securities Commission to investigate whether criminal conduct has occurred.”

Chrislyn Skippings, Public Relations – Royal Bahamas Police Force.

The announcement of the investigation comes just three days after the Bahamas government has frozen the activities of FTX in the country. As reported by CryptoNews, it was the Bahamas SEC that decided to freeze FTX’s assets and suspend its legal registrations in the country.

With the formal investigation in the Bahamas, there are now at least three institutions and authorities following the situation of the FTX exchange. Last week it emerged that. U.S. federal agencies were already investigating the company.

What happened to FTX?

FTX, once ranked as the market’s second-largest exchange by trading volume, went under after it was reported that it was the market’s second-largest exchange by trading volume. Alleged misuse of funds by the company. led by Sam Bankman-Fried.

He is accused of using his users’ money. To finance the trading subsidiary of the stock exchangeAlameda Research, as reported by CryptoNews.

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Since the disclosure, it is estimated that there are damage of about $8 billionas well as hundreds of companies affected by their exposure to FTX and its native token, FTT.

Last Friday, at least 130 companies that are part of the FTX Group all filed for bankruptcy. They did so under Chapter 11 of the U.S. Bankruptcy Code.

This could mean the end of the career of this company, which once vied for market leadership with Binance and far outperformed smaller exchanges.

Now FTX is overshadowed by other exchange companies, which, faced with the situation, have allowed themselves to To show their own reservations. This, as an attempt to preserve the trust – damaged – of its users.


Update 13/11/2022: this text has been updated to add information on the current situation of the FTX exchange.

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